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Mattel Inc. (MAT) Earnings Estimate And Price Target Raised

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Analysts Sean McGowan and Patrick O’ Brien at Needham have released an update on Mattel Inc. (NASDAQ: MAT). Mattel reported net sales of $1.955 million for the fourth quarter. The net sales were below analysts’ estimate of $1.994 million.

However, Mattel reported an increase of 740 basis points in gross margins compared to the same period last year and ahead of analysts’ estimates of a 500 basis point increase. The company also reported lower advertising and SG&A expenses resulting in an increase of 80% in operating profits compared to the same period last year. Analysts expect the company to sustain its margin improvements.

Analysts have raised the EPS estimate for 2010 from $1.65 to $1.75 and for 2011 from $1.80 to $1.90 and have initiated EPS estimate of $2.10 for 2012. The price target for the company has been raised to $29. Analysts at BMO Capital Markets have a Strong Buy rating for Mattel Inc. According to analysts, the main risk faced by Mattel is lower consumer spending, the company’s ability to cut costs and volatility in the US dollar.

 

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Posted-In: Needham Patrick O’ Brien Sean McGowanAnalyst Color Price Target Analyst Ratings

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